Child&#39s pay in AITC factsheet

The AITC is publishing a free factsheet for parents, aiming to explain the benefits of investment trusts in saving for children.

It sets out how to invest and explains taxation issues and inheritance tax planning.

Based on performance figures to the end of July, the AITC says £50 a month invested over 18 years in the average investment trust would have yielded £23,189 while a £1,000 lump sum over 18 years would have delivered £7,170.

The AITC says education costs are continuing to rise, with boarding school fees costing cost up to £15,000 a year while the average university student outside London spends an average of £6,318 a year.

It says investment trusts allow parents to make regular contributions by spreading risk across a variety of sectors and countries to limit the downside associated with volatile stockmarkets.

Communications director Annabel Brodie-Smith says: “Investment trusts can be a good way to give any child a financial headstart in life. On average, investment trusts enjoy low charges and good long-term returns.

“Whether you are saving for your child&#39s first car, university education or even a deposit on their first property, investment trusts can be a useful way to build up a nest egg.”

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14th August 20182:45 pm

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